In 2022, a developed economy with a formal inflation-targeting mandate experienced a surge in inflation, primarily driven by a sharp, externally-caused increase in energy costs. At the same time, economic growth was slowing. What was the fundamental trade-off this situation created for the country's central bank?
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In 2022, a developed economy with a formal inflation-targeting mandate experienced a surge in inflation, primarily driven by a sharp, externally-caused increase in energy costs. At the same time, economic growth was slowing. What was the fundamental trade-off this situation created for the country's central bank?
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